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It was almost one year ago that the ride-hailing giant, Grab announced its bid to become an everyday super app for Southeast Asia like what WeChat is for China. Their aim is to create an ecosystem which includes everything from payments to maps to food delivery under a single Grab app. Since then it has ventured into a range of services. Is Grab set to be the region's largest super app? Miro Lu gets you this report.
"Four brand new services that we are bringing to all of you in Singapore as well as to other countries around the region."
Furthering its goal of becoming Southeast Asia's super app of choice - Grab launched four new services. Users now can book hotels and movie tickets directly through the Grab App. Other new services include video on-demand and Trip Planner, which combines all modes of public transportation in the city, allowing customers to choose how they want to travel. The announcement came just a week after Grab integrated its highly successful food delivery service, GrabFood into its everyday app.
MIRO LU SINGAPORE "We asked Grab if there is a risk of losing focus as they diversify into multiple services. They rejected the argument saying that they are not getting into everything. Their focus is only on services that are demanded by their customers and which can be sustained by the Grab Platform and its existing network."
JERALD SINGH, GROUP HEAD PRODUCT & DESIGN, GRAB "Our super app strategy is very much around working with partners. Grab platform truly is an open ecosystem. The first and only of its kind in southeast Asia where partners can build directly on to the platform, use our components, use grab pay, use grab ID."
Going forward, Jerald also disclosed Grab's plan to bring in an additional 500 partners into their ecosystem within the year.
JERALD SINGH, GROUP HEAD PRODUCT & DESIGN, GRAB "A certain number of them will be integrating Grab into their own product. Integrating Grab into your services means, you are able to pay with Grab Pay, you are able to login with Grab id and you are able to book a ride directly from your product experience or you are able to schedule package deliveries. All of it powered by the Grab platform."
Some experts believe only a fraction of customers are likely to choose Grab over existing industry leaders in each sector.
NITIN PANGARKAR, ASSOCIATE PROFESSOR DEPT. OF STRATEGY & POLICY, NUS BUSINESS SCHOOL "I like the partner model. The only thing is the partner model has slightly lower margins. If you do it yourself, your margins are going to be high, if you do it through partners, you are going to get a cut out of their whatever partner earns."
Grab currently operates in 336 cities and holds e-payment licenses in six countries. Despite that, its bid to become "the" super app faces tough competition from its arch rival Go-Jek. As both giants continue their efforts in services beyond ride-hailing, only time will tell which one wins the battle of the super apps. Miro Lu, CGTN, Singapore.